All Bulls, No Bears: Hot Stocks To Consider Heading Into 2021
December 10, 2020
Welcome to the most valuable article from the Minnesota Republic. I’m not here to waste your time, since time is money, so let’s dive right in. We saw the electric vehicle sector take an expected hit at the start of December, which was inevitable given the number of bearish day traders that decided to pull out quickly. Some analysts believe this signals the start of the EV bubble popping, but that just isn’t the case. These companies will be dominating the industry in the foreseeable future. That is, unless, gasoline-powered car companies venture into electric vehicles and change their business models to reflect the green wave our society is experiencing. But even if this were to happen, those companies will already be years behind their nearest competition.
Speaking of green, let’s talk about marijuana stocks. Whether you smoke it, eat it, vape it, or avoid it, this is a sector of the U.S. market you should have on your watchlist for 2021. With the presidency moving into the hands of the Democrats, you can predict that increasing marijuana legislation is on the horizon. We can expect many more cannabis companies to pop up in the next year, and these are plays you may want to get into before they take off due to their expected growth. That being said, read through their business plan and monitor any news related to the taxes on marijuana, as this could heavily affect the cannabis market. Also, make sure you are investing in American cannabis companies. Although Canadian cannabis companies are already established and doing well, they’re still not allowed to export to the United States because cannabis isn’t federally legal yet. A decent spec play may be to buy into Canadian marijuana companies such as Tilray ($TLRY) and Canopy Growth ($CGC) whenever they dip, in hopes of US federal legalization in the short run.
As we continue to see the tech industry blow up, so do ARK Invest’s ETFs. These active ETFs come from the company that originally put a $4,000 price target on Tesla back when they were worth around $200 a share, prior to their 5:1 stock split. This brings me to my stocks (ETFs actually) of the week: ARK Next Generation Internet ($ARKW), ARK Innovation ETF ($ARKK), and ARK FinTech Innovation ($ARKF). Led by founder and CEO Catherine Wood (aka Mrs. Big Wood), ARK Invest continues to outperform the market by substantial margins. The model Mrs. Big Wood and her team follow is very bullish and innovative in itself.
“Through an open approach that cuts across sectors, market capitalizations, and geographies, ARK can identify large-scale investment opportunities in the public markets resulting from technological innovations centered around DNA sequencing, robotics, artificial intelligence, energy storage, and blockchain technology.” Diving into these uncharted waters is a very hard task, but Catherine and her team continue to progress day after day in nearly all their tech ETFs. Currently, ARK Innovation ETF and ARK Next Generation Internet are both up nearly 500% in the past 5 years, and ARK Fintech Innovation is up 138% since it was listed on February 4th, 2019. If you are looking for a solid return for the next 10 years, consider adding one of these ETFs to your portfolio.
Unless Republicans can find a way to overturn this election, I guarantee that vaccine companies will boom soon. It’s only a matter of time until a vaccine gets approved worldwide. The question is, which company will be the first to reach this feat? Pfizer ($PFE) and Moderna ($MRNA) are the two companies leading the pack. Pfizer’s vaccine just got approved by Canada for use on December 12th. This news comes after the U.K. approved their vaccine. Just recently, news broke that the FDA will hold a conference to vote on the approval of Pfizer’s vaccine. Let’s just say a late, out of the money Pfizer call most likely won’t let you down.
*Disclaimer: Jace Goudreau is not a registered investment, legal or tax advisor or a broker/dealer. All financial opinions expressed in this article are from personal research and experience. It is important you do your own research before making any financial decisions.*